PDS Investment Analysis Report & Stock Research, Precision Drilling Trust Units

Precision Drilling Trust Units (PDS)

PDS Stock Report

2-Year Price History

View Larger PDS Chart
NYSE:PDS
$8.17
(2/9 12:04PM)
+2.8%
Open$8.03 Mkt Cap$2.2 Billion
High$8.23 52Wk High$9.34
Low$8 52Wk Low$2.03
Volume464,287 Avg Vol 10D1.7 Million

Ockham's Rating/Recommendation Summary

Rating specific information requires Premium Access.
Buy Now or Learn More about Ockham's Features and Services.

PDS Revenue

As a value investing shop, we are interested in seeing how PDS's revenues measure up against past performances. One easily understandable way of doing that is to compare Price to Sales per share levels over a given time frame. Assuming it is available, Ockham prefers to look at ten years of history (for this stock there are 6 years of history available) and we weigh recent years more heavily. This allows us to find weighted average historical high and low Price to Sales ratios, which give us a better idea of the stock's current underlying value. Using this method, we have established a high range for Price to Sales of 3.56x and the low end of the range at 1.29x.

With respect to these historically rational metrics, notice that the current Price to Sales per share ratio for PDS of 2.08x is somewhat below its historical weighted average by 15%. Given this level of sales per share, we suggest a neutral share price forecast. To the extent there is a further drop in the Price to Sales ratio from current levels, which would occur through some combination of increased sales per share or a decline in share price, we would only become more positive about the Price to Sales ratio outlook.

PDS Cash Earnings

Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. PDS is below its historical average multiple of cash earnings as calculated by Ockham. Similar to our analysis of sales per share, Ockham looks at the last 5 years of cash earnings levels for PDS to identify where the current high and low price levels have been historically in relation to profit per share. Again, we utilize a weighted average methodology which relies more heavily on recent years of data. This weighted average framework provides us with an average high Price to Cash Earnings ratio per share of 9.28 and a 2.77 low over the same period.

With a historical average Cash Earnings ratio of 6.03, the current Cash Earnings ratio of 5.75 is a positive opportunity for value in the Ockham view. Naturally, we would love to see a deeper value opportunity for PDS, but to get there one of two things must occur (or both). Either the stock price must decline further to increase the long term buying opportunity, or the management at PDS needs to earn more cash. If either, or both, of these occur, then we could see a significant gap emerge between what investors were willing to pay for in the past, and where PDS is trading currently (latest close price of $7.94).

PDS Dividends

When determining a company's future prospects for success, Ockham Research sees analysis of dividend payments as a key additional factor. Even though it isn't imperative for PDS to shell out a dividend in order to receive a positive rating, it can be helpful to further our analysis.

Peer Comparison

:

Precision Drilling Trust Units Industry Grouping

(2/8/2010)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not including PDS) 8.26 2.24 » 20.82 1.77 0.49 » 3.83 32.72% 16.31%
*10 year range does not include current year values
Patterson-UTI Energy, Inc. PTEN $2.3 Billion $15.05 6.95 2.17 » 29.83 1.96 0.48 » 5.24 23.27% 24.10%
Atlas Energy Inc Inc. ATLS $2.3 Billion $29.05 7.64 1.84 » 23.30 1.62 0.20 » 1.80 n/a 13.70%
Precision Drilling Trust Units PDS $2.2 Billion $7.95 5.75 1.45 » 14.35 2.08 0.52 » 5.04 n/a 25.02%
Atwood Oceanics, Inc. ATW $2.2 Billion $33.68 7.22 2.96 » 30.07 3.70 1.36 » 7.72 29.11% 19.36%
Provident Energy Trust PVX $2.1 Billion $7.91 10.12 1.61 » 9.42 1.20 0.34 » 4.14 47.79% 5.90%
Sunoco Logistics Partners LP SXL $2.0 Billion $64.88 9.40 2.63 » 11.50 0.37 0.08 » 0.25 30.70% 18.50%
Ockham Coverflow

Sharpen Your Investing

  • Access to over 5,000 stock reports
  • Portfolio Analytics and Tracking
  • Business Television Tracking
  • CNBC and Fox Business Show Recaps
Get Started
The Latest Financial News
The most recent Stocks on Financial TV & Blogs from impactful financial news sources
Mad Money

Precision Drilling Trust Units (PDS) Discussed on CNBC's Mad Money

Precision Drilling Trust Units is in the news. Find out how this impacts PDS trading on Ockham Research.

Rules are solid gold. Let's remember where they came, from my mistakes so you don't make them. >> do the homework and listen to reports and listen to the conference calls and compare pds to competitors, but once you've got a candidate you have to figure out entry and exit I already know don't pay more than twice the growth rate and schnitsel in and schnitsel out

“… ut entry and exit I already know don't pay more than twice the growth rate and schnitsel in and schnitsel out …”

View All Precision Drilling Trust Units Stock News

Key Fundamentals

PDS - Precision Drilling Trust Units Fundamentals
Price (2/9 12:04PM) $8.17
Volume (2/9 12:04PM) 464,287
Last Close Price $7.95
10 Day Average Volume 1.7 Million
13 Week Price Range $6.29 - $9.34
52 Week Price Range $2.03 - $9.34
LTM Revenue $1.0 Billion
 
Shares Outstanding (12/2008) 275.6 Million
Market Capitalization $2.2 Billion
Shares Held By Institutions 143.4 Million
Institutional Holders 227
% Shares Held By Institutions 52.10%
Earnings Per Share (EPS) $1.97
P/E Ratio 6.30
Book Value Per Share $8.98
 
Gross Margin 47.00%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 2.24
Fiscal Year Ends December

About Precision Drilling Trust Units

Precision Drilling Trust Units is considered to operate in the Basic Materials sector. They specifically operate in the Oil & Gas Equipment/Services business segment contained within the Energy industry.

The Company, through its subsidiaries, provides contract drilling, and completion and production services to the oil and gas exploration and production companies in Canada, the United States and internationally.